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The central bank said that in May annual inflation stood at 6.5% and that according to its forecast it would continue to gradually decline over the rest of the year, reaching the 3% target level in the first half of 2021.
Georgia is expecting $1.5bn in financing from International Financial Institutions (IFIs) by the end of 2020, according to Georgian Prime Minister Giorgi Gakharia. This includes the disbursement of a $200mn loan tranche under the Extended Fund Facility (EFF) to help the country meet urgent balance of payments and fiscal needs stemming from the effects of COVID-19 pandemic. The World Bank is to provide $80mn in financial support to Georgia under its Fast Track COVID-19 Facility to help with efforts by the country’s government to mitigate and address the health and social impacts of the coronavirus pandemic.
2.0 Politics
2.1 Georgia passes electoral amendments in second
reading
The Georgian parliament passed its election bill in the second reading on June 23, with 115 votes in the 150-member legislative, only two more votes than needed.
A third vote will be necessary for the bill to be declared approved by lawmakers.
Under the bill, 120 seats in parliament will be distributed based on the votes received on lists, while only 30 MPs will be elected based on a majority vote. Full list-based elections will be enforced by 2024, under the new Constitution.
The major opposition parties, United National Movement (UNM) and European Georgia, who support the amendments, refused to attend the vote in a protest aimed at securing the release of the co-founder of opposition-minded TV channel Mtavari Arkhi, Giorgi Rurua, which they claim is a “political prisoner”.
The UNM MP Roman Gotsiridze said that the amendments, which ensure more proportional elections for this autumn, "will not be fully legitimate if they are passed without the opposition".
Parliament backed the draft constitutional amendments in the first reading on June 21.
2.2 MEPs vote for creating “common economic space” between EU and six Eastern Partnership nations
A "common economic space" between the EU and the six former Soviet republics of its Eastern Partnership programme—Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine—should be created as part of a "gradual integration" of the countries into the bloc, according to European
6 GEORGIA Country Report July 2020 www.intellinews.com
